Covid-19 & Market Changes
There are a lot of questions circulating around, and just in the last few days I've had several conversations with friends and clients, asking what is happening in real estate during this challenging time.
Q) What's happening with prices?
A) Price movement has not made any major changes down, but we have seen Sellers accepting marginally lower offers than in January. As a Buyer you can most likely be more a bit more aggressive with your offers. As a Seller you are more than likely going to need to drop a bit lower than you'd prefer, but not significantly in most cases. The main takeaway here is that there may be "deals" out there, but don't plan on "stealing" anything with an offer 10% lower than list price. Further, if you are Selling and making a move to another property in Kelowna, while you may need to take a bit less for your property, you will likely pay a bit less less for your new home as well.
Q) Are Sellers still allowing showings? Can I view a property that I'm interested in?
A) Long story short, yes. We are taking as much care to protect all parties, and encourage the use of gloves and/or masks while viewing, but most properties are allowing showings just like normal. One exception is tenanted properties; in some cases, renters and tenants have indicated a solid "no" to showings, but this is few and far between.
Q) Are deals closing as normal?
A) Yes. Most banks have been directed to close on deals as usual, with no extraordinary measures taken regarding those who may be dealing with a temporary layoff or work interruption.
Q) Are there still Buyers out there for my listing, or should I wait to list?
A) Sales activity in most price ranges has remained resilient. Buyers are certainly still out there. Condos, townhomes, and "normal" family homes are still realizing consistent showing activity and sales. Some luxury properties, which tend towards out-of-town Buyers, have slowed down. At the moment you will likely get less showings than normal. However, the showings that you do get will be serious, qualified Buyers. Tire kicking is at an all time low.
Q) What's the deal with "Virtual Tours"?
A) Virtual Tours are a fantastic tool right now. For example, here is a link to the tour for one of my favourite listings, a beautiful home on Kensington Drive in Lower Mission: https://my.matterport.com/show/?m=S9vDcvoYs1d. Using these you can see a lot of the layout of the home, etc, to see if it might work for you.
It has never been more important to be upfront, honest, and respectful in a real estate transaction. Emotions and stress are running high, and nerves are easily frayed. Everyone understands what is going on, and thankfully I've seen remarkable willingness to work together to get deals done. As a community we have stepped up in so many ways, and it's great to see the same happening in my industry, as trivial as it may seem right now.
As always, I'm here to help. Questions, concerns, requests for statistics, etc - anything I can do. It's not just about buying and selling, so never hesitate to reach out directly to the phone which is glued to my hip @ 250-575-4292.